Oclaro (OCLR $3.36 +0.42) provided further details about the progress of the co's recovery efforts from the flooding in Thailand. The company announced upside preliminary revenue for the second quarter with revenues of approximately $86 million for the second quarter versus the $80.7 million Capital IQ consensus, up from prior guidance of $75-85 million, which was provided by the company on November 9, 2011.
Oclaro currently expects four of the five flood affected product lines to have restarted commercial output at Fabrinet's Pinehurst facility by the end of January. Oclaro currently expects capital expenditures of approximately $6 million in each of the second (December) and third (March) fiscal quarters.
These amounts include the necessary capital currently expected to recover product lines lost during the flood. Oclaro believes it has adequate property and business interruption insurance to cover its flood related losses. Oclaro also has certain insurance recovery rights under its supply agreement with Fabrinet. While the total amount of insurance claims, and related recoveries, if any, cannot be estimated at this time, Oclaro currently believes that an advance payment from its insurance carrier in excess of $10 mln is likely to be received in the March fiscal quarter.






